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Category Archives: Artificial Intelligence

SAVVY SENIORS: Artificial Intelligence will be a genuine game … – Peace Arch News

Hi there! Im TaxGPT, a friendly AI tax adviser.

Well, thanks anyway, but I had a human file my tax return for me this year.

But of course, we know the world is changing as Artificial Intelligence or AI dominates the planet.

AI is now a hot topic as almost 77 per cent of devices today use AI technology. There are more AI assistants today, a figure which will eventually surpass the number of people on this Earth.

According to carbon60global.com the AI market is expected to reach $407 billion by 2027. By 2057, robots could replace or displace 2.7 million jobs in construction and engineering alone.

How many times have you said, Hey Google, where is the nearest Italian restaurant?

Hey Siri, what is the population of Nunavut?

Alexa, play me my favourite Lionel Richie songs from the 80s.

AI is software meant to mimic a human mind and model human intelligence.

According to Reference.com, the general benefit of AI is that it replicates decisions and actions of humans without human shortcomings such as fatigue, emotion and limited time.

I am thinking of adding a shortcoming such as stupidity to the list, which would mean we could replace the average politician with artificial intelligence.

Machines driven by AI technology are being used to replace humans as they are able to perform consistent repetitious actions without getting tired.

They dont need work breaks or work-life balance or time off due to sickness. They are available 24/7 and reduce the need for human personnel.

Theres a reduction in human error.

Those are some of the advantages.

However, currently, the disadvantages are that machines are neither flexible nor creative, as robots cant think outside the box. It stifles critical thinking as AI cant be improved with experience like we can. Costs are high and it leads to unemployment and the risk of making humans lazy.

Is Artificial Intelligence improving the lives of seniors today?

Absolutely.

During the pandemic, research studies were done in Sweden and the U.K. where a chatbot, an interactive computer program using AI voice technology, was used to interact with isolated seniors.

The researchers used a chatbot called ChatGPT (Generative Pre-Trained Transformer) as a cure for loneliness. It replicated human conversation, covering a wide array of topics. It can create human-like responses when prompted.

As visitors werent allowed to visit their elderly loved ones during the lockdown, ChatGPT could also help the isolated seniors answer questions, problem-solve as well as compose letters to their family.

Thats a good thing, but on the downside, chatbots could easily replace human interactions with all of their emotional baggage and drama.

At Drexel University in Pennsylvania, (drexel.edu) researchers say that using similar voice technology helps with early detection of dementia and Alzheimers disease. The chatbox program used was 80 per cent accurate in predicting early signs of dementia because language impairment affects between 60 and 80 per cent of dementia patients. The program can detect subtle clues such as grammar and pronunciation mistakes, hesitation and forgetting the meaning of words.

As the AI creators strive to produce a machine with a humans intellectual capacities, its billionaire executives such as Sam Altman fear that superhuman machine intelligence is probably the greatest threat to the continuous existence of humanity. Even Elon Musk is asking for a six-month moratorium on the development of advanced AI systems, including the latest version of ChatGPT.

But fellas, before you take a hiatus, could you develop me an interactive chatbot, who well call George, to be at my beck and call?

Hey George, rub my tired feet. While youre at it, peel me a grape!

April Lewis writes monthly on seniors issues for Peace Arch News.

AI technologyColumnSeniors

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Global Artificial Intelligence in Healthcare Market Report 2023: Ability of AI to Improve Patient Outcomes and Growing Importance of AI-assisted Robot…

DUBLIN, April 18, 2023 /PRNewswire/ -- The "Artificial Intelligence in Healthcare Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)" report has been added to ResearchAndMarkets.com's offering.

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The artificial intelligence in the healthcare market is expected to register a CAGR of 42.2% during the forecast period.

Companies Mentioned

Key Market Trends

Medical Imaging & Diagnostics To Hold Significant Share in the Market

In diagnostics, AI enables healthcare providers to make the most appropriate treatment decisions for their patients. AI can be used to identify cancer, triage crucial discoveries in medical imaging, flag acute abnormalities, assist radiologists in prioritizing life-threatening patients, diagnose cardiac arrhythmias, forecast stroke outcomes, and assist with chronic disease management.

The rise in the prevalence of chronic diseases, along with product launches by market players, drives the segment. For instance, the Cancer Facts and Figures 2022, published in January 2022 by the American Cancer Society, predicted approximately 1.9 million new cancer cases in 2022, estimating 186,670 prostate cancer cases, followed by 169,870 cases of lung cancer and 144,490 cases of female breast cancer.

The increased prevalence of cancer and the high burden of other chronic diseases are, in turn, increasing the demand for accurate diagnosis and treatment. This is likely to increase the adoption of AI for early diagnosis purposes, ultimately boosting the market growth.

Incorporating AI into imaging devices may improve diagnosis, which is expected to aid market growth during the forecast period. For instance, in December 2021, Roche introduced three artificial intelligence (AI) based, deep learning image analysis Research Use Only (RUO) algorithms developed for breast cancer.

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Additionally, in April 2022, Arterys, the vendor-neutral AI platform, launched several new modules to its robust Cardio AI clinical application and an additional (eighth) Food and Drug Administration (FDA) AI clearance based on deep learning.

Additionally, various strategies adopted by the market players are expected to propel the segment's growth. For instance, in November 2021, LifeVoxel, based in San Diego, raised USD 5 million in a seed round to improve the data intelligence of its AI diagnostic visualization platform for faster and more accurate prognosis. Healthcare facilities employ the Software-as-a-Service (SaaS) platform for remote diagnostics in various medical specialties, including radiology, cardiology, and orthopedics.

Thus, all the aforementioned factors, such as the growing prevalence of chronic diseases and key strategies adopted by market players, are expected to boost the segment's growth over the forecast period.

North America Expected to Hold a Significant Market Share

The use of artificial intelligence in the North American healthcare market is being driven by the increasing use of advanced technology in healthcare systems, the growth in funding of AI-based startups, the rising burden of chronic diseases in the country, the growing need to reduce healthcare costs, and the implementation of big data in healthcare.

The increased adoption of big data in healthcare in the region is expected to propel the market's growth. For instance, in August 2022, the Children's Hospital of Philadelphia (CHOP) and the University of Pennsylvania School of Medicine (Penn Medicine) launched the big data-driven Penn-CHOP Kidney Innovation Center, which will support research to improve patient care for adults and children with kidney disease.

Moreover, the Association of American Medical Colleges reported in August 2022 that the United States spends USD 4 trillion per year on health care. Thus, the region is facing the need to minimize healthcare costs, which can be accomplished by applying AI in healthcare, thereby enhancing market growth.

Furthermore, introducing technologically advanced products into the market is expected to propel the market's growth. For instance, in December 2021, Crawford & Company introduced Crawford Intelligent Fraud Detection.

It combined human expertise and forensic analysis, joining DXC Luxoft's Financial Crimes Intelligence platform with IBM, improvising how it recognizes and manages fraudulent claims for its clients. Additionally, in June 2022, My Intelligent Machines (MIMs) launched software with artificial intelligence that has the potential to transform the way organizations prepare for oncology clinical trials or drug development.

Strategic activities of the market players are also expected to support the market's expansion. For instance, in June 2022, Insilico Medicine opened a fully automated, artificial intelligence-driven robotics lab for drug research.

Thus, all the factors mentioned above, such as the growing demand for big data in healthcare and technologically advanced product launches, are expected to boost the market over the forecast period.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS4.1 Market Overview4.2 Market Drivers4.2.1 Growing Need to Reduce Increasing Healthcare Costs4.2.2 Big Data in Healthcare4.2.3 Ability of AI to Improve Patient Outcomes and Growing Importance of AI-assisted Robot Surgery4.3 Market Restraints4.3.1 Reluctance Among Traditional Practitioners to Adopt AI-based Technologies4.4 Industry Attractiveness - Porter's Five Forces Analysis

5 MARKET SEGMENTATION (Market Size by Value - USD million)5.1 By Technology5.1.1 Natural Language Processing (NLP)5.1.2 Deep Learning5.1.3 Context Aware Processing5.1.4 Querying Method5.1.5 Other Technology Types5.2 By Application5.2.1 Robot-assisted Surgery5.2.2 Virtual Nursing Assistants5.2.3 Fraud Detection5.2.4 Drug Discovery and Research5.2.5 Dosage Error Reduction5.2.6 Medical Imaging and Diagnostics5.2.7 Wearables5.2.8 Other Application Types5.3 By Offering5.3.1 Hardware5.3.2 Software5.3.3 Services5.4 By End-user5.4.1 Healthcare Payers5.4.2 Healthcare Providers5.4.3 Pharmaceutical and Biotechnology Companies5.4.4 Patients5.4.5 Other End-user Types5.5 By Geography

6 COMPETITIVE LANDSCAPE6.1 Company Profiles

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

For more information about this report visit https://www.researchandmarkets.com/r/z2i953

About ResearchAndMarkets.comResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Media Contact:

Research and MarketsLaura Wood, Senior Managerpress@researchandmarkets.comFor E.S.T Office Hours Call +1-917-300-0470For U.S./CAN Toll Free Call +1-800-526-8630For GMT Office Hours Call +353-1-416-8900U.S. Fax: 646-607-1907Fax (outside U.S.): +353-1-481-1716

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Global Artificial Intelligence in Healthcare Market Report 2023: Ability of AI to Improve Patient Outcomes and Growing Importance of AI-assisted Robot...

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The Artificial Intelligence Takeover Has Begun The Greyhound – The Greyhound

The following represents the opinion of the student reporter and does not represent the views of Loyola University Maryland, the Greyhound, or Loyola Universitys Department of Communication.

Large language models (LLMs) are here to stay. These are artificial intelligence systems that can generate natural, fluent and coherent text on any topic, given some input. They can also converse with humans, answer questions, write code and perform other tasks that require natural language understanding and generation.

Some of the most popular LLMs today are ChatGPT, Bard, and Bing. ChatGPT is developed by OpenAI, a research organization backed by tech luminaries like Elon Musk and Sam Altman. Bard is created by Google, based on its Language Model for Dialogue Applications (LaMDA). Bing is powered by Microsoft, using its own proprietary technology.

These LLMs have attracted millions of users who use them for various purposes, such as entertainment, education, productivity, and creativity. Some examples of how people use LLMs are:

Chatting with ChatGPT for fun, learning or companionship. ChatGPT can engage in casual conversations, tell jokes, stories and trivia, and even flirt with users. It can also adapt to different personalities and tones, depending on the users preferences.

Using Bard to generate ideas, summaries and content. Bard can help users with writing tasks, such as drafting emails, blog posts, presentations and essays. It can also provide suggestions, feedback and insights on various topics and domains.

Leveraging Bing to search for information, answers and solutions. Bing can not only provide relevant web results, but also generate natural language responses that explain the results or provide additional details. It can also solve problems, such as math equations, puzzles and quizzes.

The benefits of using LLMs are manifold. They can save time, enhance creativity, improve communication and expand knowledge. They can also provide entertainment, comfort and support. However, there are also some challenges and risks associated with LLMs, such as:

The quality and reliability of the generated text. LLMs are not always accurate or factual, as they rely on probabilistic methods and large amounts of data that may contain errors or biases. Users need to be aware of the limitations and uncertainties of LLMs, and verify the information they provide.

The ethical and social implications of the generated text. LLMs may produce text that is harmful, offensive or inappropriate, either intentionally or unintentionally. Users need to be responsible and respectful when using LLMs, and avoid generating or spreading text that may cause harm or offense to others.

The security and privacy of the user data. LLMs may collect and store user data, such as queries, responses and preferences, for improving their performance or providing personalized services. Users need to be aware of the data policies and practices of the LLM providers, and protect their personal information and identity.

LLMs are a powerful and promising technology that can transform the way we interact with information and each other. They offer many opportunities and benefits for users who want to explore new possibilities and enhance their capabilities. However, they also pose some challenges and risks that require caution and awareness from users who want to use them safely and ethically.

I would like to give Microsoft Bing a special thanks for writing all of that for me.

Here is the prompt I fed it to get that response: Write a NYT article about how LLMs like ChatGPT, Bard, and Bing are here to stay, and how people use them as a benefit. It took ten seconds to generate all of that text.

My Experience Using LLMs

Ive spent some time using all three platforms listed above. Both Microsoft Bing and ChatGPT are free to use to the public, but for Bard, you must join a waitlist. Of all three of them, ChatGPT-4 is the most advanced, followed by Bing and then Bard.

Bing is more informational and research based, while ChatGPT and Bard are more conversational based. You can feed them ludicrous tasks and it will fulfill them, as long as it isnt deemed offensive. The most creative thing I got ChatGPT to do was pretend to be Barack Obama giving a speech about the pandemic, but structured as if it was written like the King James version of the Bible. Needless to say, its pretty remarkable. The current version of OpenAIs platform is called ChatGPT-4. It only has access to information leading up to September 2021.

Microsoft Bing is much different, and I have been using it for a couple of weeks now. You can access it by using the Bing search engine, however, if you use Microsoft Edge as a browser, it has a dedicated button that you can press. Bing is separated into three options, the Chat feature, the Compose feature, and insights. I created the snippet above using the Compose feature, which allows you to do anything from paragraphs to emails, with different tones and lengths. However, the feature I find myself using the most is the Chat feature.

The Chat feature works differently than ChatGPT. First you select a tone of response: either creative, balanced, or precise. For the sake of my usage, I have been using precise. Afterward, you simply enter in whatever you want to know and it will scour the internet for responses and then generate a response based on sources that it pulls. The sources can be accessed either by clicking on the text, or by clicking the links at the bottom.

Bard by Google is like ChatGPT, except that it has access to the internet. However, it is by far the worst one. While it is able to generate responses faster than its competitors, the information is more often than not incorrect, and I have noticed that it has biases that can be considered problematic. Google says that Bard is experimental and a work in progress, and it is clear that this program certainly needs more work.

GPT in the Classroom

Based on the popularity, it is very clear that LLMs are here to stay. However, the quick rise in use has left educators scrambling to adapt. Some applications, like TurnItIn, are able to detect writing created by artificial intelligence. Yet, that may not dissuade some students from using it, so the question now becomes: Should LLMs like ChatGPT be outright banned, or should educators learn to adapt its usage into the classroom?

I believe that the latter is a much more practical answer for the classroom. ChatGPT and Bing should be treated as tools, just as search engines and databases are. As these programs are slowly being implemented into browsers and other services, to outright ban them would do more harm than good. But what is stopping students from using it to blatantly cheat? Trevor Oberlander 24 has a pessimistic view on this.

College degrees are worthless now because of ChatGPT, he said. If everyone is cheating, learning in class becomes redundant.

Oberlander, an economics major, says that GPAs can no longer be considered a unit of measure for school, since it is impossible to tell if legitimate work was done to receive the number. The amount of effort between students is incomparable if it is impossible to tell who actually put in effort to do work.

Lily Tiger 24 is also skeptical about LLMs. As an English major, she is very worried about the future of education and job security with her degree.

I went to a career fair and I asked if anyone has any positions for experience with research and writing skills, she said. If that is what ChatGPT can do then it makes me feel threatened.

Tiger is also considering a career path in high school education, so the prospect of a readily available and free answer machine makes her nervous for schooling in the future. She also believes that the education system needs to adapt or somehow integrate LLMs into the classroom.

We cant see it as a fear, because its already here. If we refuse to talk about it, that isnt a good idea. Teachers need to learn how to use this with their students as a resource, Tiger said.

Whats in store for the future?

While ChatGPT is currently a novel technology, in the five month timeframe between the release of GPT-3 and GPT-4, the abilities of the artificial intelligence have grown exponentially. In a recent interview on the Lex Fridman Podcast, Open AIs CEO, Sam Altman, stated that ChatGPT, will make a lot of jobs just go away.

I came across a TikTok recently that showed how GPT was integrated into a software program that creates over 100 professional grade headshots, based on a photo that the user submits. This is all done in mere hours. That right there is an industry killer, and the professional photography industry is not the only one affected so far. OpenAI recently announced that Shopify users will now have the ability to integrate a GPT-powered customer support representative on their online stores. Now, the customer support industry has been flattened as well.

ChatGPT is slowly creeping into every facet of our daily lives. Spotify now has a ChatGPT powered DJ that mimics a human DJ, and plays music tailored to your taste. Quizlet now has a GPT study partner, which asks you surprisingly in depth questions about flashcards that the user has provided. Even Snapchat has released a premium feature called My AI, which is a virtual friend that users can communicate within their Snapchat+ subscription. CNET, a company which writes news about technology and consumer electronics, revealed earlier this year that they have used artificial intelligence to write dozens of their articles.

Needless to say this phenomenon is not going away anytime soon. In fact, I would say that it is here to stay. So what is the solution for the AI takeover? Unfortunately, I do not think that there is an answer that would satisfy everyone. On one hand, LLMs are quickly proving to be an excellent resource for many. However, concerns about the ethics of using it are very real. And with Sam Altman outright saying that entire industries will be replaced by AI, the cause for concern is warranted.

A petition is currently circulating online which has been signed by the likes of Elon Musk and Apple co-founder Steve Wozniak. The petition is calling for the halt of AI development past ChatGPT-4 for at least six months. The main tenet of this petition is that Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable.

The petition goes on to state that OpenAI recently announced that At some point, it may be important to get independent review before starting to train future systems, and for the most advanced efforts to agree to limit the rate of growth of computers used for creating new models. The signers believe that now is the time for them to do this. They are worried about the competitiveness of AI and the idea that we are quickly entering a stage in technological evolution, where AI could become human-like.

Im not one to toot the horn of someone like Elon Musk, however, we are clearly at a pivotal moment in the history of technology. It is incredible what ChatGPT and other LLMs can do, however, I feel that we as a society should tread lightly down the artificial intelligence road. Science fiction is full of stories regarding artificial intelligence takeover. While I do believe we are leagues away from that happening, we should still err on the side of caution.

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The Artificial Intelligence Takeover Has Begun The Greyhound - The Greyhound

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How is artificial intelligence used in cricket? – Rebellion Research

How is artificial intelligence used in cricket?

Cricket is a bat-and-ball game that originated in England in the 16th century additionally, has since become a popular sport around the world. While there is no direct connection between the sport of cricket and artificial intelligence, there have been some notable applications of AI in the sport in recent years.

Cricket has a long and rich history, with the first recorded game taking place in the 16th century. Over time, the game evolved and became more formalized, with the first international match played in the mid-19th century. Today, cricket becomes played at both the professional and amateur levels. Moreover, with international tournaments such as the Cricket World Cup and the Ashes attracting millions of viewers around the world.

One area where AI has become used is in player analysis, where data from matches and training sessions analyze with machine learning algorithms to identify patterns and trends. Thus this can help coaches and players identify areas for improvement and develop more effective training programs.

Another area where AI has become applied in cricket is in the use of virtual reality training simulations. By using VR headsets and controllers, players can practice and refine their skills in a simulated environment, which can be especially useful for training when outdoor facilities are not available.

AI has also become used in cricket umpiring. Where machine learning algorithms help umpires make more accurate decisions. However, this technology is still in its early stages, but has the potential to revolutionize the sport by reducing errors and improving the overall accuracy of umpiring decisions.

In conclusion, while there is no direct connection between the sport of cricket and artificial intelligence, there have been some notable applications of AI in the sport in recent years. Furthermoe, from player analysis and virtual reality training simulations to umpiring technology. Lastly, AI has the potential to transform the way the sport becomes played and officiated. In addition could help take cricket to new heights of popularity and success in the years to come.

Cricket + Artificial Intelligence SV4U Blog (siliconvalley4u.com)

How AI is helping to improve Cricket (analyticsinsight.net)

used in the IPL? (indiaai.gov.in)

Cricket? Mad About Sports

Artificial Intelligence in Cricket (thinkml.ai)

AI IN CRICKET. -BATTING ITS WAY OUT!!!! | by Asthajha | Student Technical CommunityVIT Vellore | Medium

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Nvidia’s $329 Billion Surge Helped By Artificial Intelligence … – Baker City Herald

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United States of AmericaUS Virgin IslandsUnited States Minor Outlying IslandsCanadaMexico, United Mexican StatesBahamas, Commonwealth of theCuba, Republic ofDominican RepublicHaiti, Republic ofJamaicaAfghanistanAlbania, People's Socialist Republic ofAlgeria, People's Democratic Republic ofAmerican SamoaAndorra, Principality ofAngola, Republic ofAnguillaAntarctica (the territory South of 60 deg S)Antigua and BarbudaArgentina, Argentine RepublicArmeniaArubaAustralia, Commonwealth ofAustria, Republic ofAzerbaijan, Republic ofBahrain, Kingdom ofBangladesh, People's Republic ofBarbadosBelarusBelgium, Kingdom ofBelizeBenin, People's Republic ofBermudaBhutan, Kingdom ofBolivia, Republic ofBosnia and HerzegovinaBotswana, Republic ofBouvet Island (Bouvetoya)Brazil, Federative Republic ofBritish Indian Ocean Territory (Chagos Archipelago)British Virgin IslandsBrunei DarussalamBulgaria, People's Republic ofBurkina FasoBurundi, Republic ofCambodia, Kingdom ofCameroon, United Republic ofCape Verde, Republic ofCayman IslandsCentral African RepublicChad, Republic ofChile, Republic ofChina, People's Republic ofChristmas IslandCocos (Keeling) IslandsColombia, Republic ofComoros, Union of theCongo, Democratic Republic ofCongo, People's Republic ofCook IslandsCosta Rica, Republic ofCote D'Ivoire, Ivory Coast, Republic of theCyprus, Republic ofCzech RepublicDenmark, Kingdom ofDjibouti, Republic ofDominica, Commonwealth ofEcuador, Republic ofEgypt, Arab Republic ofEl Salvador, Republic ofEquatorial Guinea, Republic ofEritreaEstoniaEthiopiaFaeroe IslandsFalkland Islands (Malvinas)Fiji, Republic of the Fiji IslandsFinland, Republic ofFrance, French RepublicFrench GuianaFrench PolynesiaFrench Southern TerritoriesGabon, Gabonese RepublicGambia, Republic of theGeorgiaGermanyGhana, Republic ofGibraltarGreece, Hellenic RepublicGreenlandGrenadaGuadaloupeGuamGuatemala, Republic ofGuinea, RevolutionaryPeople's Rep'c ofGuinea-Bissau, Republic ofGuyana, Republic ofHeard and McDonald IslandsHoly See (Vatican City State)Honduras, Republic ofHong Kong, Special Administrative Region of ChinaHrvatska (Croatia)Hungary, Hungarian People's RepublicIceland, Republic ofIndia, Republic ofIndonesia, Republic ofIran, Islamic Republic ofIraq, Republic ofIrelandIsrael, State ofItaly, Italian RepublicJapanJordan, Hashemite Kingdom ofKazakhstan, Republic ofKenya, Republic ofKiribati, Republic ofKorea, Democratic People's Republic ofKorea, Republic ofKuwait, State ofKyrgyz RepublicLao People's Democratic RepublicLatviaLebanon, Lebanese RepublicLesotho, Kingdom ofLiberia, Republic ofLibyan Arab JamahiriyaLiechtenstein, Principality ofLithuaniaLuxembourg, Grand Duchy ofMacao, Special Administrative Region of ChinaMacedonia, the former Yugoslav Republic ofMadagascar, Republic ofMalawi, Republic ofMalaysiaMaldives, Republic ofMali, Republic ofMalta, Republic ofMarshall IslandsMartiniqueMauritania, Islamic Republic ofMauritiusMayotteMicronesia, Federated States ofMoldova, Republic ofMonaco, Principality ofMongolia, Mongolian People's RepublicMontserratMorocco, Kingdom ofMozambique, People's Republic ofMyanmarNamibiaNauru, Republic ofNepal, Kingdom ofNetherlands AntillesNetherlands, Kingdom of theNew CaledoniaNew ZealandNicaragua, Republic ofNiger, Republic of theNigeria, Federal Republic ofNiue, Republic ofNorfolk IslandNorthern Mariana IslandsNorway, Kingdom ofOman, Sultanate ofPakistan, Islamic Republic ofPalauPalestinian Territory, OccupiedPanama, Republic ofPapua New GuineaParaguay, Republic ofPeru, Republic ofPhilippines, Republic of thePitcairn IslandPoland, Polish People's RepublicPortugal, Portuguese RepublicPuerto RicoQatar, State ofReunionRomania, Socialist Republic ofRussian FederationRwanda, Rwandese RepublicSamoa, Independent State ofSan Marino, Republic ofSao Tome and Principe, Democratic Republic ofSaudi Arabia, Kingdom ofSenegal, Republic ofSerbia and MontenegroSeychelles, Republic ofSierra Leone, Republic ofSingapore, Republic ofSlovakia (Slovak Republic)SloveniaSolomon IslandsSomalia, Somali RepublicSouth Africa, Republic ofSouth Georgia and the South Sandwich IslandsSpain, Spanish StateSri Lanka, Democratic Socialist Republic ofSt. HelenaSt. Kitts and NevisSt. LuciaSt. Pierre and MiquelonSt. Vincent and the GrenadinesSudan, Democratic Republic of theSuriname, Republic ofSvalbard & Jan Mayen IslandsSwaziland, Kingdom ofSweden, Kingdom ofSwitzerland, Swiss ConfederationSyrian Arab RepublicTaiwan, Province of ChinaTajikistanTanzania, United Republic ofThailand, Kingdom ofTimor-Leste, Democratic Republic ofTogo, Togolese RepublicTokelau (Tokelau Islands)Tonga, Kingdom ofTrinidad and Tobago, Republic ofTunisia, Republic ofTurkey, Republic ofTurkmenistanTurks and Caicos IslandsTuvaluUganda, Republic ofUkraineUnited Arab EmiratesUnited Kingdom of Great Britain & N. IrelandUruguay, Eastern Republic ofUzbekistanVanuatuVenezuela, Bolivarian Republic ofViet Nam, Socialist Republic ofWallis and Futuna IslandsWestern SaharaYemenZambia, Republic ofZimbabwe

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‘Gold Rush’ in Artificial Intelligence Expected To Drive Data Center … – CoStar Group

The rapid adoption of new artificial intelligence apps and an intensifying bid for dominance among tech giants Amazon, Google and Microsoft are expected to drive investment and double-digit growth for the data center industry in the next five years.

A gold rush of AI these days centers on the brisk development of tools such as ChatGPT, according to a new analysis from real estate services firm JLL. Voice- and text-generating AI apps could transform the speed and accuracy of customer service interactions and accelerate demand for computing power, as well as the systems and networks connecting users that data centers provide, the real estate firm said.

The emergence of AI comes on the heels of increased usage of data centers in the past few years, as people spend more time online for work and entertainment, fueling the need for these digital information hubs, which provide the speed, memory and power to support those connections.

JLL projected that half of all data centers will be used to support AI programs by 2025. The new AI applications need for enormous amounts of data capacity will require more power and expanded space for the data center services, particularly colocation facilities, which are a type of data center that rents capacity to third-party companies and may service dozens of them at one time. It's also a potential growth area for commercial property investors.

We expect AI applications, and the machine learning processes that enable them, will drive significant demand for colocation capabilities like those we provide, Raul Martynek, CEO of Dallas-based DataBank, told CoStar News in an email. Specifically, the demand will be for high-density colocation and data centers that provide significantly greater concentrations of power and cooling.

One kilowatt hour of energy can power a 100-watt light bulb for 10 hours, and traditional data server workloads might require 15 kilowatts per typical cabinet, or server rack, Martynek said. But the high-performance computing nodes required to train large language models like ChatGPT can consume 80 kilowatts or more per cabinet.

This requires more spacing between cabinets to maintain cooling, or specialized water-chilled doors to cool the cabinets, Martynek said.

In addition to the added energy and water needs, the growth in data centers faces other challenges. Credit-rating firm S&P Global Ratings noted that long-term industry risks include shifting technology, cloud service providers filling their own data center needs, and weaker pricing. The data center industry, with power-hungry facilities running 24 hours a day and 365 days a year, has also received criticism from environmentalists.

DataBank owns and operates more than 65 data centers in 27 metropolitan markets. This month, it secured $350 million in financing from TD Bank to fund its ongoing expansion.

It was DataBanks second successful financing this year, coming just weeks after completing a $715 million net-lease securitization in March 1. Under net-lease offerings, issuers securitize their rent revenue streams into bonds. The sale of those bonds replenishes the issuers capital to be used to pay down debt and continue investments.

ChatGPT and other apps are bots that use machine learning to mimic human speech and writing. ChatGPT debuted in November and is most arguably the most sophisticated to launch so far. AI software developer Tidio estimated recently that usage of such bots has already grown to 1.5 billion users worldwide.

In January, Microsoft announced a new multibillion-dollar investment in ChatGPT maker OpenAI. Google has recently improved its AI chatbot, Bard, in an effort to rival its competitors. And Amazon Web Services, the largest cloud computing provider, introduced a service last week called Bedrock aimed at helping other companies develop their own chatbots.

Amazon CEO Andy Jassy touted the e-commerce giants AI plans in his annual letter to shareholders.

Most companies want to use these large language models but the really good ones take billions of dollars to train and many years and most companies dont want to go through that, Jassy said last week on CNBC. So what they want to do is they want to work off of a foundational model thats big and great already and then have the ability to customize it for their own purposes. And thats what Bedrock is.

The growth projections of AI have data center owners and operators at the forefront of the securitized bond market. Three data center providers have issued $1.3 billion in net-lease securitized offerings already this year, according to CoStar data. Thats more than all of last year combined. In addition, two more providers have offerings in the wings.

The sector is a bright spot in an otherwise weakened market for other commercial real estate securitized bond offerings, down more than 70% from the same time last year.

The data center space remains extremely attractive to capital sources looking for quality and stability versus other asset classes that have been challenged amidst uncertain economic conditions, Carl Beardsley, managing director and data centers lead at JLL Capital Markets, told CoStar News in an email.

JLL said data center financing comes from a variety of sources including debt funds, life insurance companies, banks and originators of commercial-mortgage backed securities.

Although money center banks and some regional banks have become more conservative during this volatile interest rate period, there is still a large appetite from the lender universe to allocate funds toward data centers, Beardsley said.

JLL is forecasting that the global data center market is expected to grow 11.3% from 2021 through 2026.

Across its six primary data center markets Chicago, Dallas-Fort Worth, New Jersey, Northern California, Northern Virginia and Phoenix the United States has a strong appetite for data centers property transactions compared to other countries, according to JLL, accounting for 52% of all deals from 2018 to 2022. These markets also have a data center capacity of 1,939 megawatts under construction, JLL said. One megawatt is equal to 1,000 kilowatts.

The growth is expected to continue even heading into a potential recession, according to S&P, which has rated two of the three data center securitized bond offerings completed this year so far.

Overall supply and demand is relatively balanced as new data center development has been constrained in certain markets by site availability, lingering supply chain issues and more recently, power capacity constraints, S&P noted in its reviews. Although we expect data centers to see some growth deceleration in a recessionary environment, we believe it will be mitigated by the critical nature of data centers.

S&P added that market data suggests 2022 vacancy rates were low for key data center markets and rental rates increased year over year.

New net-lease securitized fundraisings this year have come from DataBank, Stack Infrastructure, and Vantage Data Centers.

Denver-based Vantage, a global provider of hyperscale data center campuses, saw unprecedented growth in 2022, outperforming its previous record set in 2021. The company began developing four new campuses internationally and opened 13 data centers. The company raised more than $3 billion last year to support that effort.

Last month, Vantage completed an additional securitized notes offering raising $370 million. The offering was backed by tenant lease payments on 13 completed and operating wholesale data centers located in California, Washington state and Canada.

Stack, a Denver-based developer and operator of data centers, issued $250 million in securitized notes last month.

Stacks growth is outpacing the industry with a portfolio of more than 1 gigawatt, or 1,000 megawatts, of built and under-development capacity, and more than 2 gigawatts of future development capacity planned across the globe. The company has more than 4 million square feet currently under development.

Stack most recently announced the expansion of a Northern Virginia campus to 250 megawatts, the groundbreaking for another 100 megawatt campus in Northern Virginias Prince William County and the expansion of its 200 megawatt flagship Portland, Oregon, campus.

In addition, Dallas firm CyrusOne and Seattle-based Sabey Data Centers have filed preliminary notices of offerings in the works with the Securities and Exchange Commission.

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'Gold Rush' in Artificial Intelligence Expected To Drive Data Center ... - CoStar Group

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